German bunds bounce ahead of Q1 GDP, April consumer inflation

The German bunds bounced Wednesday as investors are closely eyeing the country’s first-quarter gross domestic product (GDP) and consumer price inflation (CPI) for the month of April, scheduled to be released on May 12.

The yield on the benchmark 10-year bond, which moves inversely to its price, slumped nearly 1-1/2 basis points to 0.41 percent, the long-term 30-year bond yields plunged nearly 2 basis points to 1.21 percent and the yield on short-term 2-year bond traded nearly 1/2 basis point lower at -0.67 percent by 08:10 GMT.

Germany's quarterly economic growth, to be released on Friday, is now expected to pick up to 0.6 percent in the first quarter from 0.4 percent in the final three months of last year, Reuters reported.

Lastly, the country’s industrial production fell by less than expected in March while trade proved resilient, data released showed Tuesday, supporting robust growth expectations for the first quarter. Industrial output edged down by 0.4 percent on the month, Tuesday's data from the Economy Ministry showed. This was better than the consensus forecast in a Reuters poll for a drop of 0.6 percent.

Meanwhile, the German stock index DAX Index traded 0.17 percent lower at 12,728.00 by 08:10 GMT, while at 08:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -46.92 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex